RE:US$7.375 million on average vs. US$4.3 million previouslyOver the years have looked at BPLI to see if it could ever make a meaningful sustainable profit or significant + cash flow. This extension to contract is eye-catching but it is not only for an extra year but involves commitment to ~50% more instructors?
I reckon the new contract might give GROSS profit annually of about US$3MM (possibly up to $4MM) making certain assumptions on the instructor and other direct costs. Even at $4MM (US$1MM/qtr) is that good enuf to make BPLI sustain profitability? They have other things in their favor but notice they have another $1MM+ included last qtr in receivables which is non-interest bearing Atlantic funding, and then they rely on people in high places (like Callian's involvement with Fed govt) to offer ancillary contracts.
Still not sure what sp outcome might be even with this more favorable contract. Ideas?